LONDON FIRM'S COMMENT.

Shannon News, 24 March 1925, Page 4

LONDON FIRM'S COMMENT.

From the statistical point of view the position of wool is very strong, writes a large London firm.' There is no doubt that the available supplies will be insufficient to meet the demand if machinery in all the manufacturing countries of the world is to be kept well employed, a'ld stocks in consumers' hands are not large. The prospects of a .settled and moderate Government in this country for some years to come has created a feeling- of confidence in the future, and there are distinct signs of an expansion in trade. In the United States of America, also, the wool industry is improving, and there seems little doubt that that country will require to import large quantities of raw material, in the near future. Another year of high prices for Merinos, therefore, seems likely, and while it is perhaps unreasonable to expect the present extreme rates to be maintained throughout the year, the are no signs at the moment of any fall. Prospects for crossbreds also are favourable, as, in spite of the big advances during the past twelve months, values for them are still reasonable compared with those for fine wools, and the dearness of goods manufactured from the latter may drive the demand on to the cheaper qualities. At the beginning of the selling season buyers experienced great difficulty in financing their purchases in Australia,, owing to the exchange position. This disorganised the market, and for some time prices there were well below the parity on this side. Arrangements were made to meet the circumstances, and the market recovered, but we cannot help feeling that j the frequent irregularities in prices re- i ported from the various overseas sell- I ing- centres may be due to temporary I financial causes. At current rates, so ; large is the value of the clips that there is some danger of the interests of the producrs suffering in the attempt to sell more wool in Australia and New Zealand than the trade is willing to carry. Growers, therefore, would be well advised to ,ship their clips for sale in London, where buyers are not faced with the same difficulties of finance and exchange, and thus, by spreading tho realisation over a longer period, avoid fluctuations in price which are not justified by the market position.